Check out Michael Pettis’s writings re China and its growth model. There’s a long and glorious tradition in SE Asia of squeezing domestic consumption to the ben

Check out Michael Pettis’s writings re China and its growth model. There’s a long and glorious tradition in SE Asia of squeezing domestic consumption to the benefit of investment and mercantilist policies. While this boosts growth, and has contributed to S Korea becoming a first world country, it also creates significant imbalances, notably growth in inequality and a larger corporate/production sector. Rebalancing is painful (China has been desperately trying to avoid this, including all the activity it is trying to import through OBOR) and the change S Korea is seeing is actually predictable - the corporate sector has to shrink while the consumption market expands.